Markets › News › DeFi

Polymarket Announces $3.9M Refund Plan After Script Compromise

Polymarket will refund $3.9 million following a security incident involving a compromised monitoring script.

Polymarket will refund $3.9 million following a security incident involving a compromised monitoring script. This is an original Token Times brief based on reporting by NewsBTC, with live market data added, as of Mon, 02 Nov 2026 01:30:01 UTC.

Why it matters

The incident highlights vulnerabilities in decentralized platforms' third-party integrations and the financial impact on users when such breaches occur.

Key takeaways
  • Polymarket's compromised script led to a $3.9M loss and trading pause.
  • Refunds will cover direct losses and trading disruption costs.
  • Polymarket's TVL dropped 12.7% over the past week to $351.6M.

Polymarket, a decentralized information markets platform, has announced a $3.9 million refund plan following a security breach involving a compromised third-party monitoring script. The incident, which occurred on October 29, led to a temporary trading pause and resulted in financial losses for users.

In an update on October 30, Polymarket clarified that the refund amount would cover both direct losses from the breach and the costs associated with the trading disruption. The platform assured users that it was taking steps to prevent similar incidents in the future.

The breach's impact is reflected in Polymarket's Total Value Locked (TVL), which dropped by 12.7% over the past week to $351.6 million, according to DeFiLlama. This decline indicates a potential loss of confidence among users and investors following the security incident.

The broader cryptocurrency market remains relatively stable, with the total market cap at $2.69 trillion and Bitcoin up by 1.08% in the last 24 hours. However, the Fear & Greed index remains at 37, indicating a sentiment of fear among investors.

The incident underscores the risks associated with decentralized platforms and the importance of robust security measures. Users and investors will be watching closely to see how Polymarket manages the situation and whether similar platforms will enhance their security protocols in response.

The market when this published · November 2, 2026
Total market cap₹256.01T
Bitcoin 24h+1.08%
Ethereum 24h+1.05%
BTC dominance58.5%
Fear & Greed37 · Fear
On-chain & primary-source check

Figures and sectors in this story, checked live against on-chain aggregators · November 2, 2026.

Polymarket TVL$354.18M-12.1% 7dDeFiLlama ↗
Bitcoin DeFi TVL$6.15BDeFiLlama ↗

Token Times reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.

Polymarket Announces $3.9M Refund Plan After Script Compromi — questions & answers

What caused the security breach on Polymarket?

The breach was caused by a compromised third-party monitoring script.

How much will Polymarket refund to affected users?

Polymarket will refund a total of $3.9 million to cover losses and trading disruption costs.

What is the current TVL of Polymarket?

Polymarket's TVL is $351.6 million, down 12.7% over the past week.

Which outlets reported this story?

This is an original Token Times brief that synthesises reporting from NewsBTC. It is not a copy of any one article — follow the source links above for the original reporting.

Token Times Newsdesk Data-stamped

Token Times's newsdesk writes original briefs by synthesising coverage from across the crypto press — 50+ outlets including CoinDesk, The Block, Decrypt and Cointelegraph — cross-checking the figures they report — and verifying them against on-chain data from DeFiLlama and mempool.space — plus live market context (CoinGecko, Binance). We summarise and link to every source; we never reproduce full articles. Read our editorial standards and how we use AI. Not financial advice.

Market data verified against CoinGecko & Binance · November 2, 2026 ⛓ Timestamped at Bitcoin block #974,190 sha256:f53b4c394da92446
Based on reporting by NewsBTC — this is an original Token Times summary with live market data, not the original article.NewsBTC · Nov 2 00:00 ↗

Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.